How do you calculate net pay to employees?

Net salary is the gross salary minus deductions such as professional tax, pension, income tax, etc., while gross is inclusive of all benefits such as medical allowance, conveyance, house rent allowance, etc.

Net Salary is Income Tax deductions, Public Provident Fund, and Professional Tax subtracted from gross salary , which means, Net Salary = Gross Salary (-) Income Tax (-) Public Provident Fund (-) Professional Tax.

In short, the steps to calculating net pay are as follows: Gross wages – pretax deductions and nontaxable arrangements – taxes – after-tax deductions = net/take-home pay .